NEW DELHI: Direct-to-home (DTH) service provider Tata Play, formerly known as Tata Sky, profiteered `450 crore by not passing on the input tax credit (ITC) benefits to the recipients who had made payment between July 2017 and January 2019, the National Anti-profiteering Authority (NAA) said Thursday.
According to the GST law, the suppliers of goods and services should pass on the benefit of any reduction in the rate of tax or the benefit of ITC to the recipients by way of commensurate reduction in prices.
The wilful action of not passing on the above benefits to the recipients in the manner prescribed is known as “profiteering”.
As per the NAA order, Tata Play has to deposit Rs 225 crore each in the central and state Consumer Welfare Funds. Besides this, interest of 18% per annum has to be paid from the period such amounts were profiteered until the date such profiteered amounts are deposited in particular consumer welfare fund within a period of three months.
“The Respondent is directed to deposit the amount profiteered in two equal parts, of Rs 225,09,03,629 in the Central Consumer Welfare Fund (CWE) and Rs 225,09,03,629 in the particular/tabulated State Consumer Welfare Funds as per the provisions of Rule 133 (3) (e) of the CGST Rules, 2017 along with interest of 18 per cent,” the order said.
According to the NAA order, if Tata Play did not comply, the monetary amount would be recovered by the jurisdictional commissioners SGST/CGST in accordance with the provisions of the CGST Act, 2017.
Meanwhile, NAA also directed the jurisdiction CGST/SGST commissioners to submit a report regarding the compliance of the above order to the authority and the DGAP or within a period of four months from the date of receipt of this order. Further, the DGAP has been directed to monitor the compliance of this order by the concerned CGST/SGST Commissioner.